Compare the company's average inventory turnover to the industry average inventory turnover rate.

Note that the average industry turnover rate for Ace Company is 10 times per year.

Consider whether the companys average inventory turnover is higher or lower than the industry average.

Explain whether a higher or lower average is better.

Determine whether the trend is improving or getting worse.

Data set for these questions.

Inventory turnover

2017 - 10,000/((6,000 + 5,000)/2) = 1.82 times

2016 - $9,500/(($5,000 + $4,800)/2) = 1.94 times